Depreciation is cost of using the asset over time. Depreciation over rental properties works differently. According to the IRS, you can depreciate a rental property if it meets all of these requirements:
- You own the property (you are considered the owner even if the property is subject to a debt).
- You use the property in your business or as income-producing activity.
- The property has a determinable useful life (meaning it is something that wears out, decays, gets used up, becomes obsolete or loses its value from natural causes).
- The property is expected to last more than one year.
Since you didn't own the property so you cannot depreciate it. The owner will start depreciating it asset as soon as he given you his property or building to use.